Villarrica's oldest hotel is an unimposing house on a quiet street, but inside are elegant details such as wrought-iron fixtures and wood-burning fireplaces. Spacious rooms, some with their own fireplaces, have huge beds and sparkling bathrooms. Some rooms also have spectacular views of Villarrica Volcano. Just outside is a pool and secluded patio, and it's just a short walk to both the lake and town. Rates include an enormous German breakfast with loads of fruit, muesli,
and fresh milk.